TAIPEI, China: China’s largest semiconductor manufacturer, Semiconductor Manufacturing International Corporation (SMIC), has reported a surge in client orders as businesses rush to stockpile inventory amid concerns over US President Donald Trump’s tariff war.
Speaking to investors and reporters on Wednesday, SMIC’s Co-Chief Executive Officer Zhao Haijun said that the company had witnessed an influx of orders in the first two quarters of 2025, with customers requesting expedited deliveries for orders initially scheduled for later in the year.
“We have seen a rush in orders as clients seek to secure supply ahead of potential tariff increases and trade restrictions,” Zhao said.
Chip market oversupply
Despite the short-term boost in demand, SMIC has warned that the mature-node chip market could face an oversupply in the latter half of 2025.
The company noted that, while a recent recovery in demand had driven growth, increasing industry-wide production capacity could lead to falling orders and increased price competition.
ALSO READ: How AI Rivalry Made Musk and Altman’s Partnership Bitter
SMIC specialises in mature-node semiconductors used in consumer electronics and household appliances. These products saw heightened demand during the COVID-19 pandemic but have since experienced a slowdown as consumer behaviour shifted.
While SMIC has been linked to producing chips for Chinese tech giant Huawei, the company has not confirmed these claims, and advanced chip sales remain a minor component of its revenue.
To bolster China’s semiconductor self-sufficiency, SMIC has significantly increased capital expenditure, rising from $4.5 billion in 2021 to $7.3 billion in 2023. Expenditure remained steady at $7.33 billion in 2024 and is expected to reach $7.5 billion in 2025.
